Supporting the traditional gap between the way men and women think is a new report about how HNW women view financial issues compared to HNW men. The conclusion is that High Net Worth women worry more about the implications of investments on the family, compared to the concerns of High Net Worth men. While HNW men are not unsympathetic pigs, they are not quite as worried about family and long-term issues as their female counterparts.
While both HNW women and HNW men worry about maintaining their current financial position, 69 percent of women are worried about this issue compared to only 61 percent of men. As wealth increases, the amount of worried individuals decreases slightly. Sixty percent of UHNW women (those with over $5 million of net worth), however, remain concerned about maintaining their current financial position. More than half of UHNW men feel similarly.
Sixty three percent of wealthy women are worried about the financial situation of their children or grandchildren, compared to only 57 percent of men. Almost a third are worried about financing the education of their children, compared to only 25 percent of men. Fifty six percent of wealthy women are worried about aging parents, compared to only 42 percent of men. Additionally, 54 percent worry about a family health catastrophe, compared to only 48 percent of men.
Men and women are equally worried about the health of their spouse with 66 percent of HNW women indicating concern and 65 percent of HNW feeling similarly. Women worry more about having someone to care for them in their old age at 54 percent, compared to only 41 percent of men. This may be not only due to the nurturing nature of women but the fact that women generally outlive their spouses.
Financial advisors and providers should be in touch with these feelings and concerns, especially when advising HNW women. The discussion should be about how an investment assists in resolving these fears and not based merely upon investment return.
This data comes from a study by Spectrem Group entitle Investment Attitudes of High Net Worth Women versus High Net Worth Men. The report is based on research with over 1500 Mass Affluent households (those with $100, 000 to $1,000,000 of net worth), 1000 Millionaire households (those with $1 to $5 million of net worth), and 500 UHNW households (those with $5 to $25 million of net worth). Net Worth does not include primary residence for the purpose of this study. The research was conducted in 2013.
For more information regarding this report, please click here…